>> welcome to "daybreak australia." shery: we are counting down to asia's major market open. haidi: these are the top stories we are covering in the next hour. u.s. stocks fall the most since june. the s&p 500 falling to a three-week low, crude plunging the most in seven weeks. releases a tweet calling the sec the short seller

in enrichment commissions. and bloomberg businessweek says china planted many chips into servers, creating a doorway into qs t -- into u.s. tech. shery: let's get you started with a quick check of how the major markets closed on thursday's session. we saw it stabilized. the 10 year yield poking through the 3.2% level for the first seven years. stabilizing around those levels, and a touch lower than that. still soft, the u.s. market stocks falling the most in's june. 500 at the lowest level in three weeks, while the dow fell for the first time in six sessions. we also saw a real estate take a hit, and that dragged the markets. the myth -- the nasdaq fell, taking a big hit.

the biggest in six weeks because we saw bloomberg's report on those chinese hacking strategies through their supply chains on american firms. haidi will see how all this plays into the asian markets. haidi: certainly that down side could play out in markets across it iasia. the asian supply chain sentiment will move some of the production facilities back to the u.s. but across the rest of the region, we are looking at a broad downside finish to the end of the week. asia-pacific markets slumping to the lowest in three weeks, the biggest tumble in about a month. when you look at emerging markets, that was the biggest tumble in more than six months. more pain ahead with asian equities broadly lower. also seeing declines when it comes to em and asian fx, gaining against every currency

other than the yen. terms of the aussie open, we are getting back games from yesterday. oil and materials had been leadib in games, and we saw the decline in oi and commodities overnight. let's get you the first word news. reporter: in less than 24 hours, the senate heads to a make or break procedural vote on supreme court nominee brett kavanaugh as lawmakers they just an fbi investigation into allegations of sexual assault. a single copy of the report was made available with some senators grouping together. say it is hard to evaluate the findings, while republicans say the allegations have not been corroborated. >> the senate should not set a fundamentally un-american precedent here. right to basic's

fairness does not disappear just because some disagree with his judicial philosophy. reporter: vice president mike pence has made a series of allegations about china interfering in elections in a speech in washington. he accused beijing of meddling in american democracy and says russia's actions pale in comparison. pence also called on google to counsel its dragonfly -- to cancel its dragonfly project, a search engine results that would create result in line with chinese policy. director says japanese inflation remains subdued. household incomes are stagnant, and monitoring fiscal policies are stretched. shinzo abe said he would fire three arrows at the plunging economy. they say that more needs to be done. for an our is bracing

storm that threatens south korea. the typhoon is approaching with heavy rain and winds gusting to 180 kilometers per hour. awa andrts of okin other islands have helped the storm. flights were canceled at the airport. their forecast is that it will pass on its way to north korea. global news, 24 hours a day on air and tic-toc on twitter, powered by more than 2700 journalists and analysts in 120 countries. i'm jenna dagenhart. this is bloomberg. shery: more now on the selloff in u.s. markets, dominated by a decline in stocks. chipmakers were among the weakest, where treasury yields hit multiyear highs and gold advanced. our reporter has the advantage -- has the details. reporter: we closed off the lows of the session, which is significant.

we closed with less than a 1% drop for the s&p and the doubt. the nasdaq was the heavy hit. key source of losses, which we will get to shortly. on the banking index, financial firms were the strength. the semiconductor law. this goes to fold the selloff in the tech sector, and the chip and hacking story. according to one analyst, he says this selloff has a lot to do with the hacking. this raises trade tensions with china. he also says china is very important to these particular tech stocks. wherego to the bloomberg you can find our library of charts. this shows for my conductor sentiment has been volatile. all these moves are over 1%. let's go to the stocks.

you see the high momentum, high beta stocks all down in a big way. there were a lot of other stocks. we have others to get there. notice there were some gaien looking to -- gainers leading to buy another broker. we have cosco falling as it reports an i.t. issue with its reporting. more on that to come they say in the days to come. haidi: we had oil falling the most in the seven weeks. this is down to some supply excess on the u.s. side. su: you look at the five-day chart and see even though venezuela is taking oil up the market, there is a huge buildup in the u.s. a big drop on the day after rising earlier in the week. the big picture shows that we are off the four-year highs of the year, and gold has managed to catch earlier on the route,

but fell toward the end of the session. haidi: thank you. su kennan for a look at the overnight trading action. let's get back to the top story. white house security advisor says cyberattacks on the u.s. validate the administration's emphasis on offensive cyber operations. that follows a business week reports that beijing hacked american computer networks using a microchip built by chinese spies. bloomberg news executive editor joins us now. a fairly complex story in terms of the technology side of things. tell us about the company and the crux of all of this. tom: this is one of the leading makers of motherboards, which is a very important component in computers and in particular the devoid -- the devices in question. the servers are put into data centers of some of our biggest companies around the world. what happened is there was a

that ouristicated plan sources have attributed to a division of the people's liberation army, that was aimed at getting manipulated chips onto motherboards made by supermicro and into these servers and into the data centers of these companies. again, these have happened over a long period of time. this is a company that provides many of the world's motherboards. this is a strategic company in that regard. what our compa -- what our sources told us is these operatives used a series of ways of manipulating different plant managers to get these chips onto the motherboards. it sounds outlandish, but this is the story that has been stood andy multiple sources certainly has had an impact on

the supply chain. it has raised questions about the security of the supply chain. what is fascinating is that the complexity and sophistication from start to finish. at the beginning, it is down to being able to bribe or threaten managers to get the chips into factories. tell us about software hacking versus hardware hacking, because the latter is quite difficult, especially to carry it out to such a targeted extent. tom: that's right. these are very small components. they are not the kinds of things that you can -- with a software hack, these things have become very commonplace. cyber criminals around the world have become very sophisticated in their ability to construct these software hacks.we have seen some very high-profile ones that have affected hundreds of millions of people around the world. hardware attacks, they are much more complicated to get these

devicesf machinery into that will end up in data centers. companies that are buying them do not exactly have the means at their disposal, at their fingertips to easily monitor, to easily assess whether this device is one that is safe to use. to,he cases we have talked these people were able to use x-rays and send their servers off to be analyzed. even across country borders, a lot of companies do not necessarily have these sophisticated means. what we are seeing is companies are using their own or making their own servers, piecing them together so that they have more control over the supply chain, over what goes into them. we know when it comes to hardware manipulation, this creates a trail of sorts. do we know go back,

exactly where this hack originated from? investigators have told us they traced it back to china. they attribute it to a division, these are very-- skilled technicians within a division of the pla, that is what the investigators have told us. intent wass that the not to get customer and consumer data, but rather what can we learn about the companies themselves? can we gain access to their intellectual property, and in some cases, can we gain access to sensitive data about what is happening within the government? remember, some of these companies have customers that are contractors to the u.s. government. shery: amazon, apple, they are all disputing the report. what exactly are they saying? tom: i encourage you to take a

look at their denials. they are very strongly worded. they are saying the information that our sources told us was wrong, but we relied in this case on very solid reporting over a period of more than a year, interviews with more than 100 people, and specifically 17 people who had direct knowledge of manipulated microchips that were implanted on servers and ended up in data centers. haidi: do we know what the chinese would have been trying to get out of these chips? is it industrial expo nosh -- espionage, or defense? information that would have been traveling across networks. if for example one of your customers was the department of defense, for some other government agency, what can we ascertain about what government,

what top-secret information was traveling across those data centers? hand, can we obtain information about the companies themselves? what kind of intellectual property, what kinds of trade secrets can we obtain about these companies? that is the kind of information that we understand the perpetrators were trying to track down in this case. haidi: thank you, we appreciate your time. tom giles in the san francisco.a must read on the bloomberg and bloomberg businessweek. supermicro, amazon, and apple have all disputed our stories, and those denials are accounted by current and former security officials who detailed the discovery of the chip for this story. more reaction to the revelations next. a chinese strategist joining us. shery: also find out how foreign businesses can prosper in china despite these ongoing trade tensions.

the brazilian currency raising losses as markets speculate on the upcoming elections. we will be live in sao paulo later. this is bloomberg. ♪

haidi: welcome back. our next guest says current china tensions are not down to trade deficit, but go down far deeper. studying the relationship between the economic giants is becoming ever more difficult. he is a longtime advisor to the chinese government and the author of "how china leaders think." thank you so much for your time. some people say this could be the new cold war. are in the unhappy world of self-fulfilling prophecy, where the reaction to a perceived threat on the other side creates reactions that make the perceived threat more from theoretical to reality. in the u.s., the perception is

to replaceis trying the u.s. and has become a competitor and an adversary. in china, the perception is a u.s. is trying to contain china. they have these opposite views, but it is not a trade war. it is an existential fear. and this is what we have to battle, because ultimately chinese people and american people are better off by america and china working together. but there are real issues, and the trade deficit is a simple number, which is not so simple. but when you look at five major issues from the u.s. point of view.1 is china's close markets . number two is the intellectual property theft of properties in china. three is industrial espionage, cyber threats. venture tech joint transfer, and the fifth is

subsidized technology. real issues, but china is making progress in intellectual property and some of the others. we have to look at these areas and see where the ultimate trade can be. they making progress in ways to hack the united states as well? we are now seeing reports there could have been hardware hacking by china. could we be facing a tech war? robert: i think we are facing a tech war. as for the hack itself, they are disputing the claims by the companies and your bloomberg reporting. but clearly china has been doing espionage. all countries do espionage. the difference is that in china there is no line. it is a blurred line between industrial and commercial espionage, and military defense and security espionage. whereis a bright red line

one is recognized as acceptable, and everything is fair game. but commercial and industrial is off-limits. to china, it is about the development of the country after a century of humiliation at the hands of japan and western powers. china is looking to build itself up. there was no distinction between industrial and military in terms of the rejuvenation of china. since 2015, china has become sensitive to the difference. progress is being made, but more needs to happen. haidi: we should note that amazon and apple have all come out with their own statements denying the accuracy of bloomberg's reporting. but certainly if you look at the details of this report, would it validate the trump administration' hard-line stance against chinas? the supplydanger

chain for technology and make stronger the argument that some of these factories should be moved back onshore? and if you are investing in this type of technology offshore, you have to bake in this risk? robert: you have hit it right on the head, and that is why this is a serious story. i cannot adjudicate the truth, but we know for sure the u.s. and china have done their best in various areas to conduct espionage operations. how it has changed, between industrial and defense espionage, china has become more sensitive. it does not make any sense for china, for the snippets of information they would get from some of these companies, to jeopardize their whole global supply chain upon which the entire economic miracle of the last 40 years has been based. that would make no sense whatsoever. that does not mean it has not happened, but it is not a national program to do that. that is completely illogical. but in terms of justifying the

trump administration in terms of what they are doing, yes, this will be used. you will always find legitimacy. the challenge is not to find legitimacy into what divides us, but the better -- challenge is to find what unites us. china is finding their own benefit. they need to open markets more. it helps the competitor position with greater freedom in china. the greater area will be the chinese government's support of industries in the future, and they are probably not willing to give up. they will put some restrictions on it, but will not give it up. we have to promote the opening of chinese markets. i think that is the key for the future, but i do not the at happening anytime soon. the u.s. is planning to put on a show of force to warn

beijing.there was the report of the near collision of the warships. is the possibility getting higher? robert: there is no question. each side is engaged in it. the am embedded within thinking of the chinese, which i am often, i can put myself into those same conclusions. that is the history of human beings. we have to rise above it in today's world and see what the issues are. the issues that really divide china and the u.s. are superficial, if we understand it deeply. there is more to be gained. but for right now, in trade, in in the south china sea, competition around the world with infrastructure development, there is increasing rivalry and it is a cause for concern. haidi: still hoping that cooler heads will prevail. thank you for joining us. plenty more to come on daybreak

australia. this is bloomberg. ♪

brett kavanaugh faces a senate vote on friday that could see him confirmed in the weekend. republicans jeff flake and susan collins say the investigation seems to be thorough and does not contain additional corroborating information. what are the next steps we are looking at? reporter: right now, the senators are finishing up going through the fbi file or having it read to them by aids one at a time -- by aides one at a time in a secure room. they will take a procedural vote between 10:00 a.m. and 1:00 p.m. in washington that will start the clock ticking on a vote for confirmation that could come saturday around the same time. there are several senators who are at this point publicly

undecided, including susan collins of maine and lisa murkowski of alaska, as well as jeff flake of arizona, and democratic senator joe manchin. they will be in the spotlight. republicans can only afford to lose one vote, although they would be ok if mansion -- if manchin votes for it. otherwise, the vice president would have to give the vote.eaking republican leaders seem confident, but we will find out on saturday. haidi: how thorough was the fbi report? joe: it depends on who you ask. the republicans say it was thorough, the democrats are complaining they did not interview a number of witnesses that could corroborate the story accused brettho kavanaugh of this sexual assault in high school. it is not being made public. joe: thank you --haidi: thank

you so much.coming up, we will preview the presidential elections in brazil. this is bloomberg. ♪

8:30 a.m. in sydney. we are looking at a down day to end up the week. futures are down a quarter of 1% at the open. stocks tumbling the most in a month emerging markets tumbling for the. most in six months -- for the most in the six months. seeing pretty steep drops across the markets. shery: it is 6:30 p.m. in new york. you are watching "daybreak: australia." plus get the first word news. jenna: a bloomberg businessweek investigation says that the chinese army planted small

microchips in the servers that made their way into data centers of companies, including amazon and apple. the chips allowed hackers to create a self doorway into networks using the servers. amazon and apple dispute the reporting. the bank of india may raise its rate 25 basis points to 6.3%. fell..to rupee bloomberg economics says they need to step up bond or justice to tackle the deficit that could balloon this month to $7.3 billion. a leading indicator for the world's least affordable housing market is crushing for the first time in three years. thursdayrties index on shows real estate trading as

much as 20% below its peak in january. bloomberg data shows that clients at that magnitude have preceded the last four down terms -- downturns in hong kong home prices. million dollars in annual compensation and could pick up shares of $100 million, if you on must reverses -- elon musk reverses the slump. $3 millionble for a bonus and an incentive of $13 million. on performance. global news, 24 hours a day on air and tic-toc on twitter, powered by more than 2700 journalists and analysts in 120 countries. i'm jenna dagenhart. this is bloomberg. haidi: let's take a look at what we are watching as trading gets underway in asia. we are looking at a bit of a settling down when it comes to the bond market driven selloff.

but volatility has jumped, and that does not seem like equity sentiment is going much of a lift. to before,ou alluded we are set up for a bad day for asian equities. there is that followthrough of how people are pricing higher bond rates, which should not be a surprise to anyone that rates are moving higher. very hawkish sounding powell this week talking about getting to a neutral rate may have to go above that at some point in the future. i think there is one big talking part -- talking point at the moment, and that is what is really driving the bond market selloff, and that is not really around inflation. well.hart shows it pretty we have 10 year breakeven rates, and we also have the turn premium over the long-term. ,oth of those are very stable and that is one significant difference to the big selloff we had in january and into

february. it was more than inflationary shock kind of worry that was spooking the markets. that is maybe giving some theort to equity bulls in long-term, that although we might see some short-term readjustment in prices like we are seeing this week, this may be is not something too fundamentally worrying to set them back over the longer-term. haidi: it seems we are also seeing readjustments in the small caps, which were the rage earlier this year. and small caps, have been outperforming, especially in the u.s. equity markets to a degree that we had not seen for a long time. we haveell 2000 index, a great chart here in your gtb library that -- gtcv library. it shows this big spike in treasury yields. -- a lot of those

companies do not make money, but they are outperforming. even a month ago, we were looking at double-digit gains this year prior to the selloff we have seen in recent weeks. it is clearly shocking a lot of particular areas of the market, not just a broad-based weakness we are seeing in places like small cap equities. and struggling more with refinancing issues. they are getting hit particularly bad at the moment. shery: adam, thank you for that. you can find his charts on the gtv library on the bloomberg. let's head over to brazil, because they are going to the polls on sunday to elect a new president. markets are opening the winner can fix the debt and stagnant economy. -- there is a risk of a divided congress and a struggle to implement meaning

policy. our bureau chief joining us. it seems like it is down to the far right candidate and the leftist. julia: that is what it is looking like. have a couple of polls to go until the actual vote on sunday, haddad farro and ahead of the pack. haddad is at 32%, 22%. the rest are at or below 10%. shery: the last time i spoke to the president of brazil, he seemed confident we will go to a runoff. is that a done deal? likely.t is it is uncommon for them to be won in the first round. the last time that happened was 1998. this week with bolsonaro advancing in the polls, some

analysts started discussing it because the possibility is not zero, but it is unlikely. in terms of a market reaction, have they been looking at it? julia: it has been great because bolsonaro rallied in the polls. there was a lot of discussion about whether he had plateaued. he had reached a ceiling, because his rejection rate is very high and remains very high. but he did better than a lot of people expected. he moved from 27% to 32%. that was outside the margin of error and not what people were predicting. markets reacted very well. stocks the currency and are up this week, which was the best in the world. what happens to economic reforms if you get a fragmented congress after elections? julia: great question, and we just don't know.

there are a lot of big names staying neutral. no matter if bolsonaro or haddad win, they have different proposals for the economy. they both have to face congress in this. nobody is really sure at this point what coalition they can get. the workers parter for haddad -- a lot of haddad had issues with corruption, and it is very fragmented. it is not as strong as it once was. bolsonaro comes from a very small party, and we do not know what kind of alliances he will be able to build. haidi: thank you for joining us. taking a bit of a preview of the brazilian elections over the weekend. next, it has been a wild week for bond markets. we still see stock markets react. we will discuss the outlook. this is bloomberg. ♪

shery: welcome back. i'm shery ahn. haidi: and i'm haidi stroud-watts. you're watching "daybreak: australia." the shockwaves are sending through assets. it is breaking through 3.2%. inflation is the biggest risk. we are bringing the asset management strategist. this chart,art with painting the picture that the bears have been out to play. positions are at record levels. in terms of the 30 year, that was a game changer. is this a game changer in the same way that february was? are we seeing inflation expectations not there? guest: i think it is more of the

latter. it is not a game changer. i think it is a surprise we are seeing bond yields move higher. thought february was more significant because it was on the back of a step up in inflation. at the moment, we have not seen a significant step up in inflation, but i think it is coming down the pipe. haidi: you would take a wait and see approach before changing your portfolio allocations? anne: that is right. it is correct to be short duration, and we would be looking to fade this move upward in the u.s. 10 years, believing we are seeing a ratcheting up. but it has had a decent move higher from the lows we saw only a couple months ago. how much of this is because the fed is allowing the bond portfolio to run off without any replacement? anne: i think that the balance sheet piece is very much playing

in the background. i think this is very much around the fed's guidance, which is becoming a little less assertive for the markets. the reality is that the u.s. economy is firing. it looks like it has got strong momentum into 2019. this chart on the bloomberg showing the level of engagement out there -- shery: this chart on the bloomberg showing the level of engagement out there. over 20,000 futures changed hands. this, youre seeing feel this has momentum, or could we see a lid on the 10 year yields and yields in general because the equity implications of that? anne: i think that the push and pull of risk off, risk on is an important factor. but again, i do think it is important to focus on the

fundamentals, like the global economy. it is still in pretty good shape, in particular the u.s., and that is why yields are rising. i would not be looking for a significant influence in u.s. yields from here. where i am turning my attention right now is where the acb will be up to with their taper into the year-end. it is coming back. it is still a little soft, but it is seemingly improving. what happens in china, we are seeing some the meal is moves. you will -- some stimulus moves. you will not see it show up right away, but they are focusing on stronger internal demands, and i think that is important to abstract from some of the noise and negative sentiment and look at the hard data. haidi: we have said a lot of times how much is a drag the impacts of inflation or a boost in inflation for tariffs going

to be. is it going to be so incremental that they will not need to react to it? anne: i think it is an incremental story, but the market became quite complacent. incremental that they will not need to react tothis focus on mf a recession in two years or three years i think takes people's eyes off the main game, which is that the economy is still doing quite well and the output gap is slowly closing in the u.s.. ,aidi: we started off this week it seems like the emerging markets are showing some -- thes with the turk turkish inflation. it is stillk vulnerable to the strengthening of the u.s. dollar, but once again in totality, the year market is still in pretty good shape.

clearly a problem child and will continue to have significant struggles. we have the brazilian elections coming up, but we are nearly through that hurdle. hasously argentina still some big challenges ahead, but abstracting from that, overall emerging markets are an area that have grown quite significantly. ecb going tois the be the big story with the catch up? anne: i think so. they are three years behind the u.s., so that is where they will good there will be opportunities to trade around expectations for monetary policy, when they might start adjusting their discount rates, what the runoff in their balance sheet might mean, in regards to a corporate market, but also with this draining of liquidity

in what we have seen in the u.s. what does it mean when ecb starts to do that? shery: what about the pound? it seems to be entering uncharted territory. when will they move? that it may be toward greater flexibility on the yield curve control, and is something we will see more of this year. it will be interesting to see how it plays out. the bond yields are at 0.15%. it would not be surprising to see the boj widen the range next year. shery: is the expectation that the boj will move what is keeping the lid on the 10 year? don't think they have a big interest in creating a lot of volatility in bond markets. i think it will be very carefully orchestrated.

it feels like a dam that would break, and i do not think that would be constructive for the japanese economy or indeed their stock market. i think they will continue to have this control piece. i think that is a very important part of their political and economic toolkit. haidi: are rumors of the demise of the u.s. economy, we are nowhere near late stage, but it seems like this late part of the cycle is elongated. should we stop talking about it? anne: i think that a lot of us commentators spent a lot of time looking for the end of the cycle, and there is nothing magical about the duration of the cycle. it has been one of the longest in history. late cycle and then start quitting the equity market, quitting credit, you will have left a lot of

performance on the table. andink following the data the valuations is not overly stretched but full, and that means you should stay invested in markets. haidi: thank you so much for coming on and joining us today. you can get a roundup of the stories to get your friday going with today's edition of "daybreak." they are for bloomberg subscribers, available on mobile and on the bloomberg anywhere. you can customize your settings to get the news and updates. this is bloomberg. ♪

shery: i'm it shery ahn in new york. haidi: and i'm haidi stroud-watts in sydney.

you are watching "daybreak: australia." let's get a check of the headlines. admittedo stepped down a -- amid an investigation. the bank instituted an investigation of the allegations. she was rigorously the most powerful woman in finance, but joins a list of banks ceos who lost their job. shery: muddy waters has found the canadian insurer. they claimed the life insurance mean billions of losses. they say they disagree with the conclusions, but muddy waters says they believe investors are not aware of the material risks posed by the file. haidi: struggling bookseller barnes & noble's rose the most since 2012 on news it is

weighing interest in the several parties, including their chairman. despite the jump, the company's market is about $500 million, a fraction of its value a decade ago. years & noble has seen 60 -- six years of revenue decline. all-time lows were extended after the target was cut to seven dollars a share. reports say instagram is snap'ssibly harming ability to fulfill expectations, after in other quarter of -- after another quarter of declines. they cut their share target to seven dollars. just when tesla investors thought they were safe or more volatility, elon musk has returned to twitter with a stab at the u.s. securities. the details.o has

i'm not sure who we are following more. terms of investors in the long, they do not want to skip. if they are short, they must be pretty happy right now because shares after hours are falling. this is in regards to one of two tweets. there is a second tweet that just dropped. let's look at the second one. in that tweet, you can see that tesla shares are down 2%. there is the tweet. he said that he just wants to write that the enrichment commission is doing incredible work. you can see that that is the sec, and the name change is so on point.there is a new tweet that came out , elon musk saying short-sellers are value destroyers, and that they should be illegal.

but you saw in after-hours trading that they are down by about 2%, falling from the professed $420 a share that investors thought he would be able to get to if you take it private. then they jumped to $380, now they are at $275 or so. throughout the course of the past few months ever since that tweed, we have been seeing the sec has reached a settlement with elon musk. he must give up his chairmanship in 45 days. interestingly, "the new york times" has been reporting that james murdoch might be the person to come in and replace elon musk as chair. there has also been pushed back because of scandals he has been related to. but because of his communication, it seems like the two independent chairs, board members who are supposed to come in and look over the communications of elon musk

apparently have not started their job, because we are seeing what is happening on twitter right now. what does he mean when he talks about short seller enrichment? ramy: basically, elon musk has been on this war of words, this very public war with short-sellers. hop into the bloomberg terminal, and i want to show you this chart that shows you the short interest for tesla over the past several years. right now, it is hanging out at just over 26%. this has not been falling, and has been rising through the second quarter as investors and analysts have been saying we are not sure if elon musk will make that 5000 vehicle for week mark. but now, it is interesting because as elon musk has been tweeting after hours, he continues to pull the stock down. that empowers the bulls.

i want to read you a couple interesting tidbits. tweet,he funding secured they gained $1.2 billion in the two weeks following that. how could we forget that elon musk smoking marijuana in that day because their shares fell, and investors reportedly gained a little more than half a billion dollars. because of all his tweets, we see tesla continuing to fall. meme, wew that it is a cannot ever forget it. waiting for the next installment in this drama. we are getting an alert across the bloomberg. china responding to that harsh speech from vice president mike pence accusing beijing of being involved in interference and meddling in the elections with propaganda. china saying that the speech accusations.nted

we will see if we can get more of a response, but this tightening of tensions along with bloomberg's report of that technology hack as well as a trade war making for a very volatile friday's session ahead. this is bloomberg. ♪

haidi: good morning, i am haidi stroud-watts. we are an hour away from the open. shery: i am shery ahn in new york. haslinda: i am sophie -- kamaruddin. sophie welcome to daybreak asia. haidi: our top stories, asia-pacific stocks for a 5th street decline after wall street fell to a three-week low, oil dropping the most in three weeks.